Treasury Nominee Scott Bessent Advocates for Tougher Russia Sanctions and Fed Independence at Confirmation Hearing

Bessent defends Trump’s tax policies and addresses concerns over fiscal responsibility and Russia sanctions during Senate confirmation.

WASHINGTON (AP) — Scott Bessent, President-elect Donald Trump’s nominee for U.S. Treasury Secretary, faced intense scrutiny during his confirmation hearing on Thursday before the Senate Finance Committee. The billionaire businessman and former Trump advisor responded to questions on a wide range of topics, including tax policy, sanctions on Russia, and the future of the IRS tax filing system.

Bessent, nominated to lead the Department of the Treasury, affirmed his support for President Trump’s economic policies, especially the continuation of key provisions from the Tax Cuts and Jobs Act of 2017. He warned that failing to extend these tax cuts would lead to significant economic hardship for the U.S.

Tax Cuts and National Debt

While Bessent’s nomination was backed by Republicans, including Senator Lindsey Graham of South Carolina, who praised him for his expertise and loyalty, he faced sharp criticism from Democrats. Senators Ron Wyden of Oregon and Michael Bennet of Colorado voiced strong opposition to extending tax cuts that they argue disproportionately benefit the wealthiest Americans and worsen the national debt, which has surpassed $36 trillion.

Bennet criticized Bessent for supporting the tax cuts while disregarding their contribution to the ballooning deficit, accusing him of shedding "crocodile tears" over the debt.

Bessent, a billionaire and former adviser to Trump, countered by emphasizing the need for fiscal restraint and spending cuts, including a return to pre-pandemic spending levels, as proposed by Republican Senator Ron Johnson of Wisconsin.

Russia Sanctions and Federal Reserve Independence

Bessent also took the opportunity to address U.S. sanctions policy, particularly with regard to Russia. He expressed concerns that the Biden administration’s sanctions were not strong enough, calling for a more aggressive approach to Russian oil exports.

He added that the Trump administration had been reluctant to impose tougher sanctions due to fears of raising U.S. energy prices during election season.

In addition to sanctions, Bessent reiterated the importance of preserving the Federal Reserve's independence, asserting that the central bank must remain free from presidential influence in order to maintain economic stability.

IRS and Tax Filing System

A focal point of the hearing was the future of the IRS’s Direct File program, which allows taxpayers to file their taxes directly with the IRS for free. While Republicans have criticized the program as inefficient, Bessent pledged to continue it at least for the 2025 tax season, emphasizing his commitment to ensuring a more streamlined and accessible system for taxpayers.

Democrats, however, questioned Bessent’s past involvement in tax matters. A document circulating among Democratic senators alleged that Bessent had avoided paying roughly $1 million in taxes related to his hedge fund. In response, Bessent stated that he was up to date on his taxes and was currently litigating the disputed portion.

Challenges Ahead for Bessent

If confirmed, Bessent will oversee the Treasury Department, which includes the IRS and plays a critical role in managing national debt, overseeing fiscal policy, and guiding the country’s financial strategy. The Treasury Department is expected to handle critical challenges, including managing inflation, controlling spending, and addressing growing national debt, all while maintaining the trust of the global financial markets.

Bessent's nomination remains under intense scrutiny as Democrats question his fiscal policies and potential conflicts of interest, while Republicans support his stance on continuing Trump’s tax policies and taking a harder line on Russia.

“I’m committed to ensuring that productive investments grow the economy, rather than wasteful spending that drives inflation,” Bessent testified.

The confirmation hearing lasted more than three hours, with Bessent responding to written questions from committee members, including Senator Elizabeth Warren, D-Mass., who raised concerns about Bessent’s views on financial stability and Treasury workforce issues.

Looking Ahead

As the confirmation process continues, Bessent’s stance on fiscal policy, Russia sanctions, and his proposed reforms for the IRS and Treasury will remain at the forefront of Senate deliberations. Should he be confirmed, Bessent would play a pivotal role in shaping the U.S. economy during a crucial time for the nation’s financial future.